Mobile devices maker Lava plans to invest about Rs 100 crore this year to ramp up its R&D capabilities as it eyes a bigger share of the burgeoning Indian handset market.

"It is very important to differentiate your products in a competitive market like India and that is where R&D also gains significance...We will invest Rs 100 crore during this fiscal to enhance our R&D capabilities," Lava International Co-Founder and Director S N Rai told PTI.

He added that this expansion would be funded through internal accruals, but declined to give further details.

"Customers has now moved from the ultra-low cost handsets to more feature-rich devices. They are still price conscious, but are willing to pay a bit extra for features like internet, file sharing and music capabilities and that is where product innovation comes in," Rai said.

The company is eyeing revenues of Rs 1,500 crore this fiscal.

"There has been good growth in business and we expect to grow revenues from Rs 1,000 crore last year to Rs 1,500 crore this fiscal," Rai said.